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This short paper sets up the assumptions portion of your research that will be used in paper 3. The focus is on "all else constant."
The two states you will consider for both this assignment and paper 3 are Pennsylvania and Ohio.
This assignment involves two elements.
Please delineate your sections with subheadings. As usual, proper citation methodology is mandatory.
A manufacturer has been selling 1600 television sets a week at 370 dollars each. A market survey indicates that for each 36 dollars rebate offered to the buyer, the number of sets sold will increase by 60 per week. Find out the demand function.
Describe the effect that changes in business taxes, personal income, and transfer payments have on a country's gross domestic product (GDP).
Jason is faced with two options: A BMW costing $40,000 gives him an additional 800 units of utility, and a laser printer costing $1,000 gives him an additional 25 units of utility. Rational choice theory would predict that he would choose:
Graph the demand curve, and give some verbal interpretation. Compute the intercept and slope of the demand curve. Use the calculus formula to calculate the point elasticity at the price of $4.00. Give a verbal interpretation of this elasticity. Is th..
When the crisis hit the world financial system, XYZ felt the shock inevitably. In any case, XYZ's government couldn't afford to bail out its bank that had gotten so much bigger than its economy. Explain what happened to this country when the world fi..
The optimal purchasing rule is satisfied when a budget line is tangent to an indifference curve. Explain with economic reasoning and an appropriate diagram.
What challenges and opportunities could arise from higher and lower degrees of government intervention?
The bank cannot observe type, but knows that fraction 0.65 of borrowers are type A and the rest are type B. What is the competitive pooling interest rate?
Your community has been chosen as the site of a new power plant that will be the source of electricity for the entire region. This power plant will be within a few blocks of your house, so you have been given the opportunity to help choose the type o..
What is the most authoritative source of GDP data? Where can you find it?
According to By the Numbers, approximately when was the last time the United States had a trade surplus? As a percentage of GDP, what was the highest trade surplus the United States has achieved? What was the highest trade deficit the United States h..
The historical returns on a balanced portfolio have had an average return of 8% and a standard deviation of 12%. Assume that returns on this portfolio follow a normal distribution. Use the empirical rule for normal distributions to answer the followi..
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